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#1905995 - 03/17/14 05:33 PM Internal LTV Limit vs Supervisory Limit
bgehres Offline
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Joined: Mar 2005
Posts: 126
We have a bank policy that limits the LTV on improved real estate to 80%. If we make a loan over our policy limit of 80% and under the supervisory limit of 85%, do we include this loan on our normal loan exceptions report and leave it off of the supervisory LTV report and calculation?

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#1906017 - 03/17/14 06:14 PM Re: Internal LTV Limit vs Supervisory Limit bgehres
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,005
Galveston, TX
It does not go on the supervisory LTV report. How you choose to handle bank policy violations is up to you. Why bother having a more restrictive policy if you are going to violate it?
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#1906058 - 03/17/14 07:11 PM Re: Internal LTV Limit vs Supervisory Limit bgehres
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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Well, it is pretty common in credit policy to have standards that you want for most loans, and allow for exceptions subject to certain conditions (mitigating factors) and track and possibly have a limit on just how many exceptions. Writing a credit policy without exceptions doesn't work.
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